The Central Bank of Mauritania has increased the main interest rate by 50 basis points to 7.25% and raised the mandatory reserve requirement for banks from 8% to 15%. This move aims to tighten monetary policy and address the accelerating inflation rate, which reached 9.3% in September 2026. The decision was made by the Monetary Policy Council, which stated that the goal is to contain inflationary pressures and anchor price stability.
The council noted that the real interest rate, calculated based on the recorded inflation, remains negative. The increase in the reserve requirement is expected to freeze approximately 10.19 billion ouguiya in additional funds at banks, bringing the total to around 21.83 billion ouguiya. This assumes that deposits, which are used to calculate the ratio, remain constant.
The council justified the tightening of monetary policy by citing the rapid acceleration of inflation to 9.3% in September, exceeding previous forecasts of 8.2% for the same month. There are also signs that rising prices are spreading to sectors beyond fresh products and energy. The council warned that inflation risks are increasing, particularly due to potential rises in energy and food import costs.
The council chose to implement the decisions gradually and will assess their combined impact on monetary conditions during its next meeting. It will continue to monitor inflation, credit, financing conditions, and exchange rates, updating its forecasts according to international price developments. The council also called for the recalibration of open market operations and the continued development of the interbank foreign exchange market.
To enhance monetary policy tools, the council recommended developing hedging instruments for currency risk and revitalizing secondary market trading of government bonds. It also suggested expanding the yield curve and improving economic data collection, monitoring, and verification. Furthermore, the council emphasized the importance of enhancing forecasting and economic analysis tools.
The Central Bank of Mauritania reaffirmed its commitment to price stability and its readiness to take necessary measures to maintain stable inflation expectations, financial stability, and confidence in the national currency. The bank's decisions aim to address the current economic challenges and ensure a stable economic environment.
The interest rate hike and increased reserve requirement are part of a broader effort to address the rising inflation and maintain economic stability in Mauritania. The central bank's actions will be closely monitored by economic analysts and stakeholders to assess their effectiveness in containing inflationary pressures and promoting economic growth.
Key points
- The Central Bank of Mauritania raises interest rate to 7.25% and reserve requirement to 15% to combat rising inflation.
- Inflation in Mauritania reached 9.3% in September 2026, exceeding previous forecasts.
- The central bank aims to contain inflationary pressures and maintain price stability.
